Penske Automotive Group

PAG

Market cap $11B

Penske (PAG) reported earnings 30 days ago. What's next for the stock?

PAG, PKG, MAR and TKR raised dividends as investors seek steady income amid inflation, tariffs and Iran conflict uncertainty.

BLOOMFIELD HILLS, Mich., May 13, 2026 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers, today announced that its Board of Directors has approved a quarterly dividend of $1.42 per share, representing an increase of $0.02 per share, or approximately 1.4%.

Las Vegas, NV, May 05, 2026 (GLOBE NEWSWIRE) -- Kalmar Ottawa recently delivered a production T2 EV electric terminal tractor to Penske Truck Leasing, making it the first truck leasing company to integrate the next-generation T2 EV into its offerings. Penske will make the T2 EVs available for lease across North America beginning Q2 2026, giving its customers an opportunity to reduce diesel fuel use, improve air quality and support sustainability goals.

I present a May 2026 dividend stock watchlist, screening for fundamental growth, economic moats, and yields above 2.5%, emphasizing valuation and future return potential. The top 25 stocks average a 3.86% yield and are potentially ~30% undervalued by dividend yield theory, with an estimated future CAGR of 18.9%. Key opportunities include high-yield names like Campbell's (7.63%), fast dividend growers such as Autoliv (38.15% DGR), and deeply undervalued stocks like Brown-Forman (-62.97%).

Penske Automotive Group (PAG) stock has performed well despite Q1 results showing slower sales. Emerging green shoots in truck leasing and new truck orders could be the cause. Service and Parts remains a profit engine, offsetting weaker vehicle sales. Recent acquisitions of Toyota/Lexus dealerships increase total company sales about by 6%. Dividend yield is attractive at 3%, but growth has slowed to fund acquisitions. Leverage has increased modestly but remains manageable.

Penske Automotive Group, Inc. (PAG) Q1 2026 Earnings Call Transcript

Penske Automotive Group delivered a strong Q1, beating earnings estimates and driving a 10% stock rally. PAG's resilient business model is underpinned by high-margin service and parts, which provide steady cash flow despite cyclical vehicle sales. Luxury vehicle focus and global diversification help insulate PAG from economic headwinds affecting broader auto sales.

Penske Automotive Group, Inc. PAG reported first-quarter 2026 adjusted earnings of $3.05 per share, which declined 15.0% year over year but topped the Zacks Consensus Estimate of $2.91 by 4.8%. Total revenues of $7.86 billion dipped 1.1% from the year-ago quarter and missed the consensus mark of $7.95 billion by 1.1%.

Although the revenue and EPS for Penske (PAG) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.